Thesis: Performance appraisal

“Employee productivity is one of the key determinants of an enterprise’s efficiency and cost structure. The more productive the employees, the lower the unit cost. The challenge for a company’s HR function is to devise ways to increase employees’ productivity. There are three main choices: employee training, self-managing teams, and pay for performance” (P.157).

How do an organisation establish who to train, how, when or what? How does one ensure a self-managing team or how do one establish who to pay and for what performance? This is all that performance appraisal entails.